Burger King May Choose to Rule from Canada

By Mike Pomranz |


A new item may be getting added to Burger King’s menu: corporate inversion.

The fast-food burger chain, probably best known for always playing second-fiddle to McDonald’s, is in talks to purchase the Canadian chain Tim Hortons, according to the New York Times. The deal would create the third-largest fast-food company in the world.

But another possible benefit for the King would be that he could relocate his headquarters to Canada and take advantage of that country’s approximately 15 percent corporate tax rate. The move would be a blow to our non-regal US president, whose administration has been looking for ways to keep companies from moving abroad to escape paying US corporate taxes, which are around 35 percent before deductions and write-offs (last year BK’s effective tax rate was about 27 percent).

Companies leaving the US to lower their tax bill, a process known as “corporate inversion,” has recently been a topic as hot as a Spicy Crispy Chicken Sandwich (meaning it’s been kinda hot, but not overwhelmingly so). The extent to which taxes are driving Burger King’s decision is up for debate though. Creating a new entity with a combined market value of more than $18 billion would certainly have other benefits. But regardless, losing the BK headquarters would mean one more company leaving American borders.

That said, “Have it your way” has always had an air of Canadian niceness to it.

We could find out if the deal goes through as soon as this week.

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